Rewritten Title: Iran Expands Child Allowance Benefits for Retirees and Workers, Removing Previous Caps
Rewritten Article:
In a significant policy update, Iran has implemented new regulations concerning child allowances for social security retirees and workers, fundamentally expanding the scope of these benefits. The changes mark a pivotal shift from previous restrictions, ensuring broader family support in line with national social welfare objectives.
A Landmark Shift in Policy
The most notable change is the complete removal of the previous two-child limit for receiving the “Hagh Olad” (child allowance). Previously, under Article 86 of the Social Security Law, the benefit was restricted to a maximum of two children. This cap has been officially abolished, a move initiated by the 2012 Law on Amending the Population and Family Regulation Laws. The reform ensures that all eligible children in a family can now receive the allowance, reflecting a strategic focus on comprehensive social support.
Calculating the New Allowance
The financial benefit is calculated in a standardized manner to ensure uniformity across the board. The monthly allowance for each child is set at three times the minimum daily wage as determined by the Supreme Labor Council.
For the current Iranian year, with the minimum wage set at 3,463,656 Rials, the calculation is straightforward:
- Monthly Allowance per Child: 10,390,968 Rials.
The formula is applied universally to all workers covered by the labor law, regardless of their base salary or years of service.
Illustrative Examples:
- A worker with one eligible child receives 10,390,968 Rials monthly.
- A worker with two eligible children receives 20,781,936 Rials.
- A worker with three eligible children receives 31,172,904 Rials.
Eligibility Criteria: Age and Status
Eligibility for the child allowance is primarily determined by the age and status of the children:
- Children Under 18: All children in this age group are unconditionally eligible for the allowance.
- Children Over 18: Benefits continue only under specific circumstances, namely if the child is pursuing higher education or is certified as having a disability that prevents employment.
The law explicitly states that marital status, divorce, or child custody arrangements do not affect a child’s eligibility. Both mothers and fathers who are legally recognized as breadwinners are entitled to claim the allowance, even if they work for the same employer.
Required Documentation
To process the allowance, beneficiaries must submit specific documents to the Social Security Organization.
Basic Documents:
- Birth certificates and national ID cards for both the insured parent and children.
- The previous month’s pay slip.
- The social security insurance booklet or registered national code.
Supplementary Documents (if applicable):
- Proof of enrollment in higher education for children over 18.
- Certification of a child’s disability or medical condition.
- Legal guardianship papers for adopted children.
Legal Rights and Fiscal Treatment
The child allowance is a legally mandated right for all eligible workers. Employers are obligated to include it in payroll calculations. In cases of non-payment, employees have the right to file a complaint with the relevant labor authorities. These financial entitlements are not subject to a statute of limitations, meaning claims can be pursued at any time.
From a fiscal perspective, the child allowance is subject to income tax as of the last Iranian year; however, no social security deductions are applied to this benefit.
This comprehensive update to the child allowance system underscores a continued commitment to strengthening the social safety net for Iranian families and workers, ensuring support is provided equitably and in accordance with the nation’s developmental plans.